Sisters water rates increase on hold

After a great deal of discussion and public commentary in city council meetings and in the pages of The Nugget, the Sisters City Council deadlocked Thursday night on a proposed water rate increase and revised fee structure for further study.

The issue foundered on a 2-2 vote (Councilor Pat Thompson was absent). Mayor Lon Kellstrom and Council President Bill Merrill voted for the new rates; Councilors Sharlene Weed and Jerry Bogart voted no. The effect of the deadlock will likely result in further study of the complex issue.

Public input from Mike Morgan, Ed Protas, and Jackie Shepardson requested such further study; Chris Converse testified, supporting the new fee structure.

Protas and Morgan continued to question the city's analysis on the true impact of the potential rate increases. However, Morgan indicated that a very productive two-hour meeting with representatives from the city had resulted in a much better understanding of the issues on both sides.

Beyond the rate analysis disparity, there appears significant concern about the equity of the proposed plan between typical household users, households that use significant amounts of water, and commercial users. There was also across-the-board concern about an apparent lack of community outreach and community input on the proposed rate change.

Outgoing Councilman Bill Merrill cited his own extensive water rate research. Speaking to the need for the consumers to gain a better understanding of water consumption and potential for conservation, Merrill asked, "Have you ever gone to the grocery store and ordered a cubic foot of milk. . .or asked for a cubic foot of gas? Gallons are what everybody understands."

The city is working on a billing system that converts the cubic feet of consumption shown on the water meter and current billing statements into gallons.

Merrill's research indicates that there should be a base rate for water that everyone on the system pays. The base rate would reflect the fixed costs of the water system. The second part of the billing should be for actual consumption, and that would vary from user to user. Expressed in gallons, users could then understand how much they were actually using, and would be in a better position to implement any desired conservation efforts.

Outgoing Councilman Bogart made a plea for what he termed "practical intelligence." He implored the council not to raise rates during an economic crisis. Bogart estimated that the rate increase would cost the cash-strapped Sisters School District $6,000 this year and potentially $30,000 over the next three years. Instead of a rate increase, Bogart proposed that the city loan the water district a portion of the $192,000 surplus that the city has realized over their budget projections at the beginning of the fiscal year.

This surplus would cover the shortfall in the water district budget for the next three years with no increase in rates.

Concern was raised over the water district incurring interest charges and a debt obligation that would ultimately have to be paid back. Bogart argued that the city would be paying the interest to itself with no net impact on the overall city budget.

Councilor Weed did not support Bogart's loan concept, but deferred on supporting the rate increase proposal at this time because she felt that there had not been sufficient community outreach and notification. She was also concerned that the current proposal did not address the equity issue or promote conservation efforts.

In other council business, Mac Hay presented a promising first report on his economic development efforts. He indicated that he is working with 14 different businesses. These include a mix of local businesses looking to expand and outside businesses looking to locate in Sisters.